My IVA breached

roweyboy

hello everyone I’m looking for some advice please 🙏 
basically I’ve got myself into a mess with gambling addiction and ended up last month taking a loan out whilst in a Iva, don’t know how got one but …

basically now I cannot afford my monthly payments and going forwards I owe family friends money and need money to live with. 

I asked my Iva company to have a payment break but when they saw my loan repayment last month they said I’ve breached and now they are saying I will have to do a assessment on my affordability on the last 3 months which it’s just going to show loads of not realistic transactions as to gambling and the Iva might be failed as I’ve had the breach notice straight away today saying I have 28 days to now to the reassessment and then if there’s affordability they will ask creditors to waive the breach.

so I’m asking what’s best for my next steps in this? I’ve paid over half way through my Iva plan and I juts needed a Break of few months so I can get back on track but now they saying need to start paying again straight away but I really need to pay others back first for first 3 months to get some money to pay the Iva again and other bills.

is it worth coming out the Iva and talking about other options ? How bad is bankruptcy and is it worth it now and does it cost ?
or is it better to deal with creditors myself or stay and hopefully continue the Iva but hoping for less expense to the plan as I pay 365 now on a £1800 take home pay every month.

many thanks for your time and please any advice is greatfull and helpful and I fully understand this is all
my own fault. 

fatbelly

If you view an IVA as bankruptcy for someone with an asset to protect, do you own any asset?

Usually that means a house or a car >£2000

If not, then bankruptcy may be a way to sort the mess out. You will get a BRO, but that is not the end of the world. Payments from income will only last 36 months and that sounds similar tovwhat you have left on the IVA

How much debt is there in total?

roweyboy

How much would I have to pay into bankruptcy? 

No I don’t have any assets only a car which is a vw polo so not worth a lot ! May I ask what’s a BRO? 

I think I have around £10000 left not to sure but think it’s around that 

fatbelly

You shouldn't need an IVA or bankruptcy for 10k of debt. Did you miss a zero?

You realise a 60 month IVA at 365 means you will pay 21900 back?

roweyboy

Sorry that’s what I should have left to pay off I had £26000 originally but they wiped off a bit I payed £300 for first 12 months then they put it up to £365 last 15 months 

RAS

Unless you had an asset to protect, with debt of that value, an IVA was not the best option.

Was it explained to you that you could end up paying back the whole debt plus all the fees if your income rose? How much are your IVA fees?

Did you accrue the initial debt from gambling?

sourcrates

It will likely take a good few months before any new collection activity starts, not much of your debt will have been paid as IVA fee`s and expenses will have been deducted from what you have paid.

See what comes out of the woodwork, and make a decision on what to do at that point, up until then, use the time to get your situation sorted out with family money etc.

And try and get some help with the gambling if you haven`t already.

roweyboy

No im really annoyed as I was desperate to get it sorted years ago and the company I phoned basically mid sold me this and didn’t explain that and I know the company went out of business year after think it was the Iva advisor. 

Anything I can do about that ?

yes mostly gambling at start and other stuff I’ve just never learnt my lesson and I’m feeling so ashamed and rock bottom now as don’t know what’s best to do now

Yeh I’ve just checked was £6150 fees and my debt to pay is £21500 so been totally misled and gutted here as if this fails I’m left with the mess all again that I started almost 3 years ago.

if it’s does fail can i set up a minimum payment to all creditors then like £20 a month for years to come as I don’t know what’s else is best and for now I just needed 3 months to sort money then could of continued paying the Iva but they wouldn’t give me a break 

thanks everyone for the advice 

fatbelly

Yes. Do what you need to do. If that is to repay family, so be it.

If the IVA fails, it won't fail quickly. Then you would let the dust settle and post here for advice.

Gambling will never form part of a debt strategy so you need to commit to going cold turkey on it

ManyWays

How large is the recent loan and do you have any other debts outside the IVA such as arrears on bills?
Paying 365 on a £1800 take home like a lot, were you being left so short that gambling seemed like a way out? 

fatbelly

I don't know what ManyWays would think about throwing in a formal complaint on the IVA or at least making the steps towards one

https://debtcamel.co.uk/complaint-iva/

I've never known one to succeed but if it slows the termination process, at least the op is still protected from action while the IVA remains in force. I can't see much downside to this, and any threat to make the op bankrupt isn't much of a threat here